Los Angeles Bankruptcy Law Monitor : Los Angeles Bankruptcy Lawyer & Attorney : Christine Wilton Law Firm : Southern California Chapter 13 & Chapter 7 Bankruptcy, Foreclosure

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Just when you think it's all over and you receive your Discharge Order from the bankruptcy court, your Fresh Start has just begun.  A great first step is to write letters to all three credit bureaus.  These letters, along with a copy of your Discharge Order, will instruct the credit bureaus to be sure your credit report correctly reflects that all your debts have been discharged.

My northern CA colleague Cathy Moran discusses the Discharge from the perspective of what is and is not dischargeable in bankruptcy. I would add that here in California, we have an added bonus for married persons where only one spouse files bankruptcy. Did you know that your spouse is protected by the Discharge Order too? 

Upon commencement of the bankruptcy case, 11 U.S.C. § 541 provides that Property of the estate includes all interests of the debtor and the debtor’s spouse in community property that is under the sole, equal, or joint management and control of the debtor; or liable for an allowable claim against the debtor, or both.

Rooz v. Kimmel (In re Kimmel), 367 B.R. 166 (Bankr. N.D. Cal. 2007) provides U.S.C.S. § 524(a)(3) protects a discharged spouse in a community property state from any action, process, or act to collect or recover from, or offset against her wages on account of a Judgment against the other spouse. 11 U.S.C.S. § 524(a)(3). After-acquired community property will be free from pre-bankruptcy creditor claims against either spouse even when only one spouse has filed a bankruptcy case.

Your Discharge is just the beginning of your fresh financial start. 

Other bankruptcy alphabet blogs using the letter D:

Debt Relief Agency, Debtor, Do's and Don'ts, and Domestic Support

Photo by Leo Reynolds